• Products vs Plans

  1. What is a product? A product corresponds to what your company sells, whether it is a tangible good or a service. Examples: Standard License Analytics Module Onboarding service Credit pack The product represents the “what” : the nature of the commercial offer, regardless of how it is billed. 2. What is a plan? A plan corresponds to a recurring product recurring to which a billing frequency and a price (amount + currency) Plan = Product +Few readers

• How revenue recognition, deferred revenue, and accrued revenue work

  To calculate the revenue recognized over a given period (a month, a quarter, a year), as well as the amounts of Unearned Revenue (PCA) and Accrued Income (FAE) at the end of that period, we first separately calculate the individual contributions of each invoice line to these different items before aggregating them. 1. Definition of revenue recognition Revenue recognition follows strict accounting rules and consists of recognizing revenue when it is actually earned, that is, when a service iFew readers

• Calculation of CMRR and CARR

  1. What is CMRR? CMRR is a snapshot-to-date of the monthly value of all your current and future subscriptions. It is aligned with events that inform future billing and is always one step ahead of MRR. CMRR includes: Current MRR Future new subscriptions (from the signing date) Future churn (from the cancellation request date) 2. What is the difference between CMRR and MRR? MRR and CMRR are two indicators related to recurring revenue, but with different perspectives. You can comparFew readers

• Churn recognition

  1. What is churn? Churn (or attrition) refers to the loss of customers or recurring revenue over a given period. Generally we distinguish churn by number of customers or “logo churn” (number of customers who unsubscribe) and churn by MRR value (amount of MRR lost due to unsubscribes). MRR is a key SaaS metric: any drop in MRR caused by churn reflects revenue attrition. 2. The different types of churn tracked in Fincome (https://storage.crisp.chat/users/helpdesk/website/-/d/9/a/b/d9abFew readers

• MRR – ARR movements

  One of the foundations of recurring revenue analysis in Fincome is based on tracking MRR (Monthly Recurring Revenue) changes. Fincome calculates the monthly MRR of each active subscription and automatically detects value changes, called MRR movements. Each movement corresponds to a net change in MRR between two periods, and the sum of all past movements of a subscription allows reconstructing its current MRR. These movements are analyzed in two complementary views: “customer-levFew readers

• MRR and ARR calculation

  1. Why does Fincome calculate MRR and ARR? Fincome's mission is to centralize billing data (Stripe Billing, Chargebee, Hyperline, Sellsy, Pennylane, incoming APIs) and standardize its interpretation in order to provide in real time the key SaaS growth metrics: MRR, ARR, churn rate, NRR, projections, forecast scenarios, etc. A consistent calculation of MRR/ARR regardless of your PSP (payment service provider) is essential to ensure reporting coherence. Indeed, without uniform rules: FinancFew readers

• Intra-period netting

  1- The key principle: MRR is a snapshot at the end of the period In Fincome, MRR is always calculated as the state of recurring revenue on a snapshot date, which corresponds to the end date of the analyzed period. In other words, Fincome does not answer the question "What happened during the period?" but the question "What is the state of MRR at the end of this period?" This principle explains why movements (churn, reactivation, expansion, contraction) can appear or disaFew readers

• MRR vs Revenue recognition

  Difference between MRR and revenue recognitionHow revenue recognition, deferred revenue, and accrued revenue workFew readers

• Calculation of LTV

  1. What is LTV? LTV, or Lifetime Value (Customer Lifetime Value), refers to the estimated amount a customer will spend on your product over the expected total duration of their subscription, including renewals. It allows you to estimate the total value of each subscriber based on the revenue they will generate over their “lifetime.” It is a summary metric, often used in the following contexts: Assessing the profitability of a channel or customer segment Tracking the overall perfFew readers

• Calculation of future MRR and future movements

  1. What is future MRR? MRR (Monthly Recurring Revenue) represents the amount of monthly recurring revenue generated by your active subscriptions at a given moment. Future MRR is a projection of that MRR over the coming months, calculated from active subscriptions and future subscriptions already recorded. It allows you to visualize the trajectory of your recurring revenue while taking into account changes already scheduled in your billing system (e.g., subscriptions with delayed start, upcomFew readers

• Exchange rate impact (FX)

  1. Foreign exchange (FX) impact – Principles, calculations and interpretation in Fincome Conversion at issue date: each line (invoice or credit note) is converted into your reporting currency at the ECB rate on the issue date. Monthly vs annual: Monthly subscription → a new rate applies each cycle → MRR varies with the foreign exchange market. Annual subscription → one single rate for the whole period → MRR remains stable from one month to the next. Operational interFew readers

• Calculation methodology

  This section groups together all the calculation rules used in the tool to produce the main SaaS indicators (MRR, ARR, CMRR, LTV, etc.). These methodologies are common across the entire platform and help ensure the consistency of the analyses displayed in the Fincome modules (Reporting, Forecast, Benchmark, etc.).Few readers

• Calculation of GRR and NRR

  1. Definition of NRR NRR (net revenue retention) measures the percentage of recurring revenue retained over a given period, taking into account changes among existing customers. It includes additional revenue generated from those customers (expansions or upsells), as well as revenue losses due to churn (cancellations) and contractions (downgrades), while excluding revenue from new customers. In short, NRR reflects the net growth of revenue coming from the existing customer base. NRR=(MRR deFew readers

• Difference between MRR and revenue recognition

  MRR (Monthly Recurring Revenue) and revenue recognition are two key concepts for evaluating the financial performance of businesses that rely on recurring subscriptions. Although both measure recurring revenue, their calculation methods differ, particularly regarding proration and how MRR is calculated at the end of each month. 1. MRR (Monthly Recurring Revenue) MRR represents the sum of monthly revenue generated by active subscriptions at a given time. The MRR for a period is calculated fFew readers

• Impact of time zones on MRR calculation

  Why time zones can influence the MRR calculation In Fincome, invoice line items are interpreted based on their start and end date and time. To ensure calculation consistency, the platform automatically applies the configured time zone on the account (by default: UTC +1 for France). This means that when an invoice line for example starts on 01/31/2025 at 11pm UTC, it is converted to 02/01/2025 at 00:00 (UTC +1) in the MRR calculation. ➡️ As a result, this line will be acFew readers